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Make sure you’re listening to good financial advice this year.

Dave Ramsey is a well-known financial expert and offers some great advice, including suggestions on which retirement accounts to invest in and why you should avoid borrowing for a new car.

But Ramsey also has some very bad advice. And if you’re considering how to manage your finances for the year ahead, here are his four suggestions from Ramsey that you should absolutely stop listening to right now.

1. Don’t worry about your credit score

Ramsey has repeatedly said that you shouldn’t worry about your credit score. Basically, he believes that only people with large amounts of debt have good credit and should avoid debt.

There are some problems with this advice. First, you will have to borrow money at some point, such as to buy a house. Ramsey said lenders do “traditional underwriting” and look beyond your credit, but this isn’t always the case.

A credit score is also important for other things, such as renting an apartment or getting affordable insurance. If not, stop following this advice now and start working on your score.

2. Avoid credit cards

Ramsey also said that credit cards should not be used, instead opting for debit cards or cash. This is also a bad move.

Credit cards help build credit. They can also give you the opportunity to be rewarded for spending whatever you have to do. You can earn

It’s also easier to rent a car or hotel with a credit card than with a debit card because you don’t have to tie up real money when making a deposit. You should have a credit card unless you have proven yourself completely irresponsible with your credit usage in the past and are not confident that you do not have a huge balance that you cannot pay back.

3. Pay off your mortgage early

Ramsey recommends buying a home with cash if possible, or taking out a 15-year mortgage if that’s not possible. He also suggests that it makes sense to pay off the mortgage early.

This is bad advice. Mortgages are among the most affordable loans, and their interest is itemized and tax deductible. You should take out a 30 year mortgage and not pay off a single extra dollar. Instead, you should invest the extra money you would otherwise use to pay off a loan with a lower interest rate than you would likely get by investing in a safe S&P 500 index fund.

4. Invest in mutual funds

Finally, Ramsey said mutual funds should be preferred over ETFs. And he advises actively managed funds.

This makes no sense. You pay more fees, have more restrictions, and often have fewer options. ETFs that track market indices are usually the best bet for most investors.

In 2023, we need to stop following all this advice. Because doing so will keep you in better financial shape in the long run.